Renishaw, a global engineering leader specializing in metrology and healthcare, has announced a voluntary redundancy program aimed at saving £20 million annually. The company operates 65 locations worldwide, including a significant facility in Wotton-under-Edge, Gloucestershire, where job cuts may affect local employees.
Facing substantial inflationary cost pressures that have outpaced revenue growth, Renishaw’s profits and operating margins have declined. A spokesperson stated, “Despite some growth, escalating costs have challenged our profitability. To support our long-term growth strategy, we must balance investment with stringent productivity and cost controls.”
Earlier cost-saving measures include closing the Edinburgh site, ending the drug delivery segment of the Neurological business, and reducing graduate recruitment. However, continued economic uncertainties have prompted further action.
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“Payroll is our highest expense,” the spokesperson explained. “To achieve £20 million in annual savings, we are initiating a voluntary redundancy program for employees in the UK and Ireland. Additionally, we will review and adjust structures within the EMEA sales region to ensure business continuity aligned with current and future trends.”
While focusing cost reductions primarily in Europe, Middle East, and Africa, the company plans only limited cuts in the Americas and APAC sales regions due to growth opportunities there. Other areas will also see modest reductions to maintain stability during this challenging period.
Renishaw remains committed to innovation and long-term market demand but acknowledges that these difficult decisions are necessary to safeguard the company’s future.